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Arsenic And Old Base Metals: Next Victim, Copper (VIDEO)
Another successful example of contrarian approach to market forecasting.
A December 3 news source offers this breaking bulletin: "The price of key industrial metals has fallen further over the last four months than occurred during the last [four] years of the Great Depression, between 1929 and 1933." (Telegraph.co.uk)
Then, as now, Copper is leading the way: From its July 2008 all-time peak, the red metal has plummeted 60% to a three-and-a-half year low.
The benefit of seeing the dramatic sell-off in copper before the tide began to turn in earnest is the singular honor of Elliott Wave International's Senior Precious and Industrial Metals analyst Mike Drakulich.
Here, our records recall one of the most insightful and invaluable messages of this entire year:
July 2008: The mainstream experts saw no end in sight to the red metals red-hot winning streak: "Ten Reasons Why Copper Prices Won't Collapse" -- July 3 Forbes.
VERSUS -- In the July 17, 2008 forecast of his Metals Specialty Service, editor Mike Drakulich reinforced his usual written weekly analysis of Copper and aluminum with the following live video update calling for an "important long-term TOP."
"This is the first time, I want to stress the first time, in a few years that I can actually suggest to you that LME and Comex Copper, as well as aluminum, might have made long-term primary degree tops… You need to know it's possible and this obviously would have huge ramifications for the bigger picture and major declines could be in store… So again, a warning: We could have for the first time in several years, primary degree completions. Be Alert."
The jaw-dropping declines in copper and aluminum to a three-and-a-half year low, and four-and-a-half year low, respectively -- speak for themselves.
Bottoms up? In the December 4 Metals Specialty Service, Mike reveals whether the killing spree in copper will come to an end anytime soon. In Mike's own words: "I continue to like the chances that COMEX Copper is at or near a" meaningful juncture.